SPH unit lists £83.2m unsecured loan notes on TISE

SINGAPORE Press Holdings' (SPH) wholly-owned indirect subsidiary in the UK, Privilege Midco, on Tuesday issued and listed about 83.2 million British pounds in unsecured loan notes on the official list of The International Stock Exchange (TISE).

The notes were issued at an issue price of 100 per cent of their principal amount, in registered form and in integral multiples of one pence, to Privilege Midco's sole shareholder Straits Ten. Straits Ten is a wholly-owned indirect subsidiary of SPH, which publishes The Business Times.

The notes are direct, unconditional and unsubordinated. They bear a coupon rate of 3.27 per cent per annum, payable quarterly in arrears and repayable on demand.

Proceeds from the notes will be used to establish intra-group loan arrangements related to an internal restructuring exercise to transfer three purpose-built accommodation properties from a Luxembourg holding structure to a UK holding structure. These properties are located in Leeds, Sheffield and Southampton, respectively.

Post the listing of the notes, Privilege Midco will provide shareholders' loans to its subsidiaries in the UK, namely Privilege L&S and Privilege Southampton.

Proceeds of the shareholders' loans, together with proceeds from 54.4 million pounds in equity injections by Privilege Midco to its UK subsidiaries, will be used to fund the acquisition of the abovementioned properties.

Carey Olsen Corporate Finance has been appointed the listing agent for the deal.

Shares of SPH were trading flat at S$1.79 as at 9.05am on Wednesday, after the announcement.